Raptors,

MORL has moved out of buy range.  Today’s price of 21.10 results in an indicated annual yield of 19.34%, which looks very attractive, but we can do better.  The Fed has been promising a rate hike for some time.  When we finally get it, I expect an over reaction that will provide an opportunity to acquire MORL on the cheap.  Never forget that patience is the raptor way.

Devour your prey raptors!

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Hold UBS ETRACS Mthly Py 2xLvg Mortg REIT ETN (MORL)

Never miss another opportunity to devour prey!

9 thoughts on “Hold UBS ETRACS Mthly Py 2xLvg Mortg REIT ETN (MORL)

  • April 8, 2015 at 4:25 pm
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    FV,

    I agree with you. I remember MORL and MORT during the second half of 2013 getting hammered when the 10 year soared towards 3%. They have been stable for the last year or so but it could get rocky again.

    MDP

    Reply
  • June 2, 2015 at 3:15 am
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    How about MORL here at 19.623 ? Do you use margin at IB for 2XETNs, like MORL, CEFL, MLPL?
    How about CEFL at 10% discount here, and MLPL as long play ?

    Reply
    • June 2, 2015 at 5:58 pm
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      MORL is still a buy at under 20. I buy REITs with cash and not margin as I don’t want to already be in a cash deficit when I write puts as they would be purely on margin then – very dangerous. I’m not currently following CEFL or MLPL and have no opinion there.

      Reply
  • June 25, 2015 at 3:02 pm
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    what do you think at MORL here at 18.x, it has been getting hammered lately…

    Reply
    • June 25, 2015 at 8:18 pm
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      I have a full allocation and will not be adding more.

      The consensus is the US Fed will raise rates sometime this year and this is generally seen as bearing for the MREITs. I think the concerns are over blown if you have a multi decade investing horizon.

      Reply
  • June 26, 2015 at 4:16 pm
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    how much % of your portfolio do you consider comfortable to be allocated on MORL ?? what´s the worst that can happen ??

    Reply
    • June 26, 2015 at 5:20 pm
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      I’m currently at 9.4% allocation to MORL. I consider 10% the max I am willing to risk on this sector. Worst that can happen is always a market price of ZERO. For that to happen, every holding in the ETN would have to go bankrupt. But I still expect more downside in the short term as rising short term interest rates will squeeze the MREIT’s margins. Are you patient enough to wait 5-7 years for short term effects to shake out? You have to choose an allocation that is consistent with your own risk tolerance and most professionals recommend no more than 5% in any one holding. Keep in mind, this is double levered and will move at twice the speed as the unlevered REM version.

      Reply
  • June 26, 2015 at 5:36 pm
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    thanks for your comments I appreciate them, I am 31 yrs old and willing to retire to be trading for a living in 2 years, tired to work for someone else, if I can make 1% or 2% per month I will be fine… you definitely inspire me with your posts! keep up the good work VR!

    Reply

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